What Is the Purpose of the 2023 Village Fund? Here’s the Answer

The Indonesian government has designed priority programs within the 2023 Village Fund to support development in rural areas. These programs include social protection and extreme poverty alleviation, operational funds for village governments, food and animal resilience, and support for priority sector programs.

Social protection and extreme poverty alleviation are the most important programs and will be provided in the form of Village Cash Transfers. The allocation for this program is a minimum of 10% and a maximum of 25% of the total Village Fund budget. The program aims to help rural communities affected by the pandemic and strengthen social security at the local level.

The operational funds for village governments will be allocated at most 3% of the total Village Fund budget to support the operational tasks of village governments.

Food and animal resilience programs are a priority with a minimum allocation of 20% of the total Village Fund budget. This program includes the development of village food barns to strengthen local food security.

In addition, the 2023 Village Fund will also support priority sector programs such as capital assistance for Village-Owned Enterprises, health, village-scale tourism, and other programs according to the potential and characteristics of each village.

The 2023 Village Fund is expected to bring positive benefits to rural communities in strengthening the local economy and improving welfare at the local level. These programs are expected to be implemented effectively and provide good results for rural communities.

In addition to priority programs, the disbursement of the 2023 Village Fund has also been well regulated. Disbursement is carried out through three stages that are channeled from the Village Fund Management Unit to the Village Fund Management Agency through the Village Fund Management Office.

Stage I, which amounts to 40% of the Village Fund budget, will be disbursed no later than June and no later than June, while Stage II, which amounts to 40% of the Village Fund budget, will be disbursed no later than August. Stage III, which amounts to 20% of the Village Fund budget, will be disbursed no later than June.

For villages with the status of Independent Village, the disbursement of the Village Fund is carried out in two stages. Stage I, which amounts to 60% of the Village Fund budget, will be disbursed no later than June, while Stage II, which amounts to 40% of the Village Fund budget, will be disbursed no later than March, but adjusted to the status and needs of the village.

With a planned and structured disbursement of the Village Fund, it is expected that development programs in rural areas can be implemented effectively and provide positive benefits for rural communities.